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Assets, Incorporated, plans to issue $ 7 million of bonds with a coupon rate of 7 percent, a par value of $ 1 , 0
Assets, Incorporated, plans to issue $ million of bonds with a coupon rate of percent, a par value of $ semiannual coupons, and years to maturity. The current market interest rate on these bonds is percent. In one year, the interest rate on the bonds will be either percent or percent with equal probability. Assume investors are riskneutral.
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